Congress, state legislatures, the media, consumer groups and the general public continue to shine a spotlight on the strength of financial institution management. This same spotlight is shining on the strength of state and federal regulatory examination and supervision procedures. In the credit union system, growing compliance requirements and the increasing complexity of credit union operations have made the work of credit union executives and their examiners that much more challenging.

Lately, the credit union system has been publicly discussing the state of examinations and the supervisory processes of regulators, both state and federal. The downturn in housing and the job market has had a major impact on all financial institutions, including credit unions. With the assessments and premiums associated with the corporate situation, credit unions are facing a unique set of difficult economic circumstances.

State regulators, as well as the NCUA, share a commitment with credit unions to ensure safe and sound operations. At the same time, regulators want credit unions to continue providing the essential financial services that support the overall economy and help their members thrive. An integral part of ensuring a credit union's safety and soundness is the regulatory examination, intended as a tool for both the credit union and the regulator.